Moody's announces completion of a periodic review of ratings of Development Bank of Kazakhstan

Moody's Investors Service ("Moody's") has completed
a periodic review of the ratings of Development Bank of Kazakhstan and
other ratings that are associated with the same analytical unit.
The review was conducted through a portfolio review in which Moody's
reassessed the appropriateness of the ratings in the context of the relevant
principal methodology(ies), recent developments, and a comparison
of the financial and operating profile to similarly rated peers.
The review did not involve a rating committee. Since 1 January
2019, Moody's practice has been to issue a press release following
each periodic review to announce its completion.

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Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Development Bank of Kazakhstan and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. The review did not involve a rating committee. Since 1 January 2019, Moody's practice has been to issue a press release following each periodic review to announce its completion.

This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.

Key rating considerations are summarized below.

Development Bank of Kazakhstan's (DBK) Baa3 long-term local- and foreign-currency issuer and senior unsecured debt ratings incorporate a three-notch uplift from the issuer's ba3 standalone assessment, reflecting our assessment of very high affiliate support from its parent, Baiterek National Management Holding, JSC (Baa3 positive). DBK has a special legal status and public-policy role as a national development bank in Kazakhstan.

DBK's ratings benefit from regular government support directed through its parent, which underpins its capital position and liquidity. This offsets pressure on the bank's standalone assessment from the deteriorated operating environment in Kazakhstan amid the coronavirus outbreak and the oil price plunge, which weighs down on its asset quality and profitability. The bank's standalone assessment remains constrained by high credit concentrations and foreign-currency exposures.

This document summarizes Moody's view as of the publication date and will not be updated until the next periodic review announcement, which will incorporate material changes in credit circumstances (if any) during the intervening period.

The principal methodology used for this review was Finance Companies Methodology published in November 2019. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

This announcement applies only to EU rated and EU endorsed ratings. Non EU rated and non EU endorsed ratings may be referenced above to the extent necessary, if they are part of the same analytical unit.

This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.

АО «Банк Развития Казахстана»
проспект Мәңгілік Ел, здание 55 А, н.п. 15 Z05T3E2 Астана
+7 (7172) 79 26 79